| 4 March 2024, Monday |

Russia to let banks cut back reporting results amid sanctions

Russia’s central bank stated on Sunday that it will enable banks to lower the frequency of their financial filings, citing the need to alleviate the impact of sanctions.

Following Russia’s military intervention into Ukraine, Western countries have slapped Moscow with a slew of financial and cultural sanctions.

In recent days, the central bank has taken unprecedented steps to support the faltering economy and the currency, including capital controls.

“The Bank of Russia has decided to temporarily decrease the volume of financial statements published by credit institutions,” it wrote on its website.

“This was done to reduce the risks that credit institutions face as a result of Western-imposed sanctions.”

It did say, however, that financial institutions would still be obligated to submit reports to it, which would “allow it to completely exert effective supervision over their activities and assess the sector,” according to the statement.

As part of Western-coordinated sanctions on Russia for its operation in Ukraine, the EU blocked seven Russian banks from the SWIFT payment system this week.

The falling ruble brought back terrible memories of the country’s financial instability in the 1990s, when millions of Russians lost their money due to a depreciating currency and skyrocketing inflation.

  • AFP